(Source: Business Wire)
Total measured advertising expenditures in the first six months of 2008 declined by 1.6 percent as compared to the same period in 2007, according to data released today by TNS Media Intelligence, the leading provider of strategic advertising and marketing information. Ad spending during the second quarter of 2008 was off 3.7 percent versus last year, the steepest quarterly drop since 2001.
"Advertising expenditures started to contract in March, well before the September turbulence on Wall Street renewed concerns about the health of the economy and possible collateral damage to the ad market," said Jon Swallen, SVP Research at TNS Media Intelligence. "Second half results, particularly for television media, will be bolstered by the Summer Olympics and political elections. However, sustained improvement will most likely depend on a turnaround in consumer spending that rejuvenates corporate profits and encourages marketers to expand their advertising efforts."
"While expenditures are certainly indicative of the challenges being presented by the economy, they also suggest the continuation of the long-term trend of marketing dollars migrating to media such as the internet, cable TV and syndication that provide the ability to more effectively target specific audiences," said Dean DeBiase, CEO of TNS Media. "With advertising budgets and CMOs under pressure and uncertainties continuing to exist relative to consumer spending, it appears marketers are placing an emphasis upon enhanced efficiencies for their brands and the ability to engage with well defined audiences to ensure ever greater return on investment."
Ad Spending by Media
Every one of the 19 measured media types posted weaker year-over-year performance in the second quarter as compared to the first three months of 2008. For the half year, Internet display advertising expenditures increased 8.0 percent as marketers continued to expand their online programs. Cable TV (+3.1 percent) and Syndication TV (+10.2 percent) were aided by limited exposure to the TV writer's strike. Outdoor ad spending advanced by 1.8 percent.
Spot TV expenditures fell 4.4 percent as reductions in automotive, retail and telecommunications advertising more than offset gains from political spending. Network TV slipped 2.4 percent on weaker prime time results. Newspaper media (-7.4 percent) and Radio media (-6.5 percent) continued to lag on further slowdowns in spending from the auto, financial, retail and telecom categories.
Percent Change in Measured Ad Spending: Jan-June 2008 vs. Jan-June 2007(1) MEDIA SECTOR % CHANGE -- Media Type (Sectors and types listed in rank order of spending) ---------------------------------------------------------- TELEVISION MEDIA -0.4% ---------------------------------------------------------- -- Network TV -2.4% ---------------------------------------------------------- -- Cable TV 3.1% ---------------------------------------------------------- -- Spot TV (2) -4.4% ---------------------------------------------------------- -- Spanish Language TV -0.1% ---------------------------------------------------------- -- Syndication - National 10.2% ---------------------------------------------------------- MAGAZINE MEDIA (3) -1.8% ---------------------------------------------------------- -- Consumer Magazines -1.8% ---------------------------------------------------------- -- B-to-B Magazines -5.9% ---------------------------------------------------------- -- Sunday Magazines 4.8% ---------------------------------------------------------- -- Local Magazines -2.8% ---------------------------------------------------------- -- Spanish Language Magazines 7.1% ---------------------------------------------------------- NEWSPAPER MEDIA -7.4% ---------------------------------------------------------- -- Local Newspapers -7.1% ---------------------------------------------------------- -- National Newspapers -9.5% ---------------------------------------------------------- -- Spanish Language Newspapers -11.0% ---------------------------------------------------------- INTERNET (4) 8.0% ---------------------------------------------------------- RADIO MEDIA -6.5% ---------------------------------------------------------- -- Local Radio (5) -7.5% ---------------------------------------------------------- -- National Spot Radio -7.4% ---------------------------------------------------------- -- Network Radio 3.4% ---------------------------------------------------------- OUTDOOR 1.8% ---------------------------------------------------------- FSIs (6) 2.0% ---------------------------------------------------------- TOTAL -1.6% ----------------------------------------------------------
Source: TNS Media Intelligence 1.
